BIAMC Webinar Examines Maritime Risk, Force Majeure, and War Risk Clauses in International Shipping
The Bali International Arbitration and Mediation Center (BIAMC) held an international webinar titled “Shipping and Trade Contracts in Times of Conflict” on 15 April 2026, bringing together legal practitioners, academics, and dispute resolution professionals to discuss the growing legal and commercial risks affecting international shipping and trade during geopolitical conflict.
The session featured Dr Melis Özdel, Head of Maritime Law at University College London (UCL), and Tiyana Sigi Pertiwi, Knowledge Lawyer at Anggraeni and Partners, presenting on behalf of Setyawati Fitri Anggraeni. The discussion was moderated by I Made Andi Arsana, Head of the Master Program in Geomatic Engineering at Universitas Gadjah Mada.
Opening the webinar, I Made Andi Arsana reflected on the continuing importance of maritime trade in global commerce:
“Whatever you have now—your computer, your glasses, your watch, your phone—may well have reached you through the ocean.”
The webinar examined how geopolitical instability, sanctions, cyber threats, and regional conflict are increasingly disrupting shipping operations, supply chains, and contractual performance.
Discussion on shipping disruption and contractual uncertainty was first directed to the Strait of Hormuz by Dr Melis Özdel, highlighting one of the world’s most strategically important maritime routes for oil, LNG, and fertiliser transportation. Disruptions in the region have already triggered force majeure claims and raised complex questions concerning contractual performance, delay, and allocation of commercial risk, particularly in relation to shipping delays and commercial uncertainty.
A significant part of the discussion focused on the distinction between force majeure and frustration under English law.
According to Dr Melis Özdel, force majeure only applies where expressly included in the contract, making careful drafting essential in shipping and trade agreements. Frustration, by contrast, exists as a legal doctrine but is applied narrowly. A contract will not be frustrated merely because performance becomes more difficult or expensive; the event must fundamentally alter the nature of the contractual obligation.
Attention was also given to how delay affects maritime contracts, particularly for time-sensitive cargoes such as LNG. In such situations, prolonged uncertainty may undermine the commercial purpose of the agreement itself.
Another major theme was contractual risk allocation. Particular emphasis was placed on the way courts increasingly examine how parties allocate risks such as war, sanctions, route deviation, delay, and political instability within the contract. Where risks are clearly addressed, contractual provisions will generally prevail.
The discussion also addressed BIMCO war risk clauses, including VOYWAR and CONWARTIME, which allow shipowners or masters to refuse orders where there is a genuine threat to the vessel, cargo, or crew. The session noted, however, that the perceived risk must be commercially reasonable and supported by evidence.
The second session turned to passenger liability and maritime compensation frameworks in conflict-affected regions, led by Tiyana Sigi Pertiwi.
The session examined the Convention on Limitation of Liability for Maritime Claims (LLMC) and the Athens Convention, both of which play significant roles in determining liability and compensation in maritime incidents involving passengers.
The LLMC framework was presented as a mechanism allowing shipowners and related parties to limit financial exposure arising from maritime claims, while the Athens Convention was discussed as a regime focused on passenger protection and compensation rights in cases involving death or personal injury during carriage.
The discussion also highlighted the growing importance of maritime insurance, particularly in high-risk regions affected by geopolitical instability and operational disruption.
The webinar concluded with reflections on the increasing importance of legal preparedness in international shipping and trade.
In closing, I Made Andi Arsana reflected that maritime law in times of conflict is ultimately concerned not only with dispute resolution, but also with preparation through careful drafting, strategic risk allocation, and effective insurance planning.
As geopolitical uncertainty continues to reshape international commerce, the webinar highlighted how shipping contracts, war risk clauses, maritime liability frameworks, and dispute resolution mechanisms are becoming increasingly central to global trade resilience.
About BIAMC
The Bali International Arbitration and Mediation Center (BIAMC) is the premier organization for dispute resolution in Indonesia. As the only international arbitration and mediation center in the country, we are dedicated to providing top-notch services in alternative dispute resolution. Our roles are divided into two: the BIAMC Institute and BIAMC Academy.
At the BIAMC Institute, we provide hearing facilities in Bali and facilitate arbitrations and mediations. We also have a panel of distinguished arbitrators and mediators who bring a wealth of experience to the table. In addition, we offer a range of educational programs through BIAMC Academy to help individuals and organizations expand their knowledge and skills in the field of arbitration and alternative dispute resolution.
We are passionate about promoting and advancing ADR practices in Indonesia and the wider Asia Pacific region. Join us and be a part of the growing community of experts in the field. Visit our website to learn more about BIAMC and our offerings.
BIAMC is an independent, not-for-profit organization established in 2017. We are proud to offer cost-competitive and efficient case management services to parties from all over the world. Our arbitration awards can be enforced globally and our administration fees are highly competitive, making us a leading global arbitral institution.